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Casco Antiguo Investment Incentives and Tax Exceptions

The Casco Antiguo, or Casco Viejo in San Felipe, Panama City, is the right decision to make investments and receive tax incentives and exemptions. The Panama City build was in the year 1673 after pirate Henry Morgan destroyed the first location 13 kilometers from the first Panama City.

After the Old Town was designated a World Heritage Site in 1997, the Panamanian government created a law to encourage the development of the Old Town. The Old Town law stimulates the construction, reconstruction, purchase, and restoration of the heritage and commercial activities of the Old Town.

Investments located in the Historical Monumental Complexes, authorized by the National Historical Heritage Directorate on the Old Quarter, with a minimum investment amount of USD$50,000 excluding the land, will receive the following incentives:

Investment Incentives in Casco Viejo

Banks have incentives to offer preferential interest rates on loans granted to restore, build, reconstruct, or purchase real estate assets in the Old Town and adjacent areas up to 3% below the market interest rate.

Commercial or residential mortgages have preferential interest rates up to 3% below the market interest rate.

(10) Ten years of property tax exemption on land and, for thirty (30) years, on property improvements.

Income tax exception on company profits during the first five (5) years of commercial activity.

After the period of the previous point has elapsed, during the following five (5) years, you may deduct as an expense the losses suffered during the three (3) fiscal years following the fiscal year in which said losses occurred.

Investment incentives in the Casco Viejo for tenants and owners

Tenants of a building constructed, restored, or reconstructed strictly for housing may deduct rental expenses from their income tax return for (5) years from the issuance of the occupancy permit.

The property owner who builds, restores, or reconstructs properties in El Casco, partially or totally, will be exempt from Income Tax concerning the income received from commercial activities, sale, or disposal of part or all of the property during (10 ) years.

A person (owner or tenant) who operates public areas such as parking lots will be exempt from income tax concerning the income received from such commercial activity for (10) years.

Incentives for Individuals and Corporations

Natural or legal persons owners, promoters, or tenants that allocate in whole or in part fourth-order buildings or vacant land and buildings that comply with the Old Town of Panama City regulation manual to serve as vehicular parking areas.

It will be exempt from the income tax generated by this activity for (10) years, counted from the occupancy permit or the land in question.

If you want additional information about the law incentives, benefits, and where to invest, visit our website! We are willing to advise you!